ONGC Videsh inks marketing agreement with SOCAR Trading
ONGC Videsh Ltd has signed a memorandum of understanding with SOCAR Trading SA to explore the possibility of joint marketing of the Indian firm’s crude oil portfolio. “Initially, both parties agreed to initiate discussion on a Joint Marketing Agreement in respect of ONGC Videsh’s equity crude oil from ACG, Azerbaijan, and based on the performance of this agreement both parties will mutually agree to optimise the price realisation of other crudes from ONGC Videsh’s portfolio either through the joint marketing or joint venture route,” an official statement said. The MoU was signed on May 27 at Geneva by S P Garg, Director (Finance) of ONGC Videsh Ltd and Arzu Azimov, CEO of SOCAR Trading. Joe Berger Womens Jersey
GAIL spuds 2nd exploratory well in Cambay Basin
GAIL (India) Ltd has started drilling its second exploratory well as an operator in its New Exploration Licensing Policy – IX block at the Cambay Basin. “The well is situated in the Nabhoi village in Tarapur Tehsil of Anand District in Gujarat. The ‘spudding’ operations started on May 27. The first well was spud in this block on March 27. Drilling of a target depth of 2,200 meters of this well is scheduled to be completed in 30 to 35 days,” an official statement said. GAIL is the lead operator of the block with 25 per cent participating interest. Other partners in this block are Bharat Petro Resources Ltd, Engineers India Ltd, Monnet Ispat Energy Ltd and Bharat Forge Infrastructure Ltd. The consortium will drill eight exploratory wells in the initial exploration phase as per minimum work commitment of production sharing contract, the statement added. Zach Cunningham Jersey
ONGC Videsh, Azerbaijan’s SOCAR to jointly trade oil: Source
India’s ONGC Videsh (OVL) is set to make a foray into oil trading and has signed an initial pact with the trading arm of Azerbaijan’s state energy company SOCAR, a source privy to the agreement said. OVL, the overseas acquisition arm of India’s biggest explorer Oil and Natural Gas Corp, plans to initially sell its share of oil from the large Azeri, Chirag and Guneshli (ACG) group of fields in Azerbaijan through the new venture, the source said. “At a later stage, OVL will look at opportunities to market its oil from other assets through the planned trading company with SOCAR,” the source added. OVL, which has stakes in oil and gas assets in 16 countries including Russia, Sudan and Brazil, produced about 178,400 barrels per day of oil and gas equivalent in the fiscal year to March 31, 2016. Currently, Mangalore Refinery and Petrochemicals Ltd, a subsidiary of ONGC, trade oil produced by assets of OVL. Stephen Curry Authentic Jersey
‘If ONGC finds it viable, it can work with GSPC… Are they India and Pakistan?’
MoS, petroleum and natural gas, Dharmendra Pradhan talks about the challenge of delivering fuel to the grassroots level, stresses on the need to make LPG and kerosene subsidies more targeted, reflects on the BJP’s defeat in Bihar, and says Assam ‘voted for its aspirations’. Why Dharmendra Pradhan: Son of former BJP MP Debendra Pradhan, Dharmendra Pradhan was inducted into the Modi Cabinet after delivering a victory for the BJP in Bihar in the 2014 general elections. Though he couldn’t manage the same feat in the Assembly elections, Pradhan has been a consistent performer as MoS, petroleum and natural gas. Freeing up diesel prices from administrative control, reduction in LPG subsidies and the Pradhan Mantri Ujjwala Yojana, for providing subsidised LPG connection to the poor, are the highlights of his tenure. DHARMENDRA PRADHAN: Our ministry (petroleum), which has the primary responsibility of delivering clean domestic fuel, has done a good job in the last two years. It has penetrated to around 60% of the households. But delivering fuel to people at the grassroots level is still a challenge. To cater to that sector, we have introduced the Pradhan Mantri Ujjwala Yojana. SHEELA BHATT: In your government’s tenure so far, international prices of crude oil and gas have been the lowest in history. But somehow the Indian consumer hasn’t reaped the benefits of that. There is one question in the minds of people across the country: why hasn’t the consumer been given 100% benefit. That’s a model, I don’t dispute that. Let me talk about my difficulties. For the first time, the government bore the expenses of the BPL (Below Poverty Line) people, for whom paying Rs 2,500-4,000 for clean fuel was difficult. Isn’t it the responsibility of a welfare state to uphold the quality of life of poor people and protect their economic interest? The second fact is that since the sharing formula of the 14th Finance Commission, whatever money comes to our (Centre’s) account in the form of tax, 42% of that is offered to the states. As part of the cooperative federalism model, shouldn’t our states be strengthened financially? I said that we should offer 50% relief to people. But there was a danger. As you must have noticed that the (crude oil) prices have started rising. The gap should not be widened to such an extent that when there is spike, it pinches the people. Our research has revealed that many countries, both developed and developing, have adopted this model, but no one has passed on 100% (of the benefits). SHEELA BHATT: So what per cent of the benefits have been passed on to the consumers? Fifty per cent of the benefits (of reduced crude oil prices in the international market) have been passed on to the consumers. The remaining 50% has been saved and shared with the states. It has been spent on welfare activities. SHEELA BHATT: In its report tabled before the Gujarat Assembly, the Comptroller and Auditor General (CAG) questioned the investments made by the Gujarat State Petroleum Corporation (GSPC). Firstly, we want to congratulate GSPC for its contribution in the exploration (of gas) globally. There is 24% gas in the world energy basket, and India’s share is 7%. (Of this 7%) Gujarat has a 25% share. This shows the competence of GSPC. So, I want to thank GSPC that it participated in bidding under the NELP (New Exploration and Licensing Policy). It participated in the third round of bidding too. (CAG questioned GSPC’s investment of R19,576 crore in the Krishna Godavari block project, among other observations.) According to the geological survey, of the five fields in high temperature-high pressure (HTHP) areas, GSPC has one field. These are very difficult fields. The nature of exploration (of oil and gas) is such that it has a 20-25% chance of success and till that time you will need to keep on spending. It is only when the production reaches the commercial phase that you start reaping the profits. So, what went wrong with GSPC, why couldn’t they convert their spending into profitability? The UPA government at one stage took the pricing mechanism, which should have been market-driven and assured by PSC (Production Sharing Contract), into its own hands. They should not have done that. Those who are questioning the viability of the project today… you did not give them (GSPC) the basic freedom and rights in PSC. After we came to power, in the new gas pricing formula that we have introduced, we have assured that we will bring in a different mechanism in deep and ultra-deep HTHP. The price mechanism that we have given now… there is a balance between cost of production and market price of GSPC. SUNIL JAIN: But even your government delayed freeing up gas prices for nearly two years? But today we have brought in good prices. There are so many stakeholders. We took one-and-a-half years, from October 2014 to March 2016, but we are bringing a futuristic model in the country and the world is appreciating the transparent model. There are bound to be some loose ends in policy-framing for such a big country. It can’t be knee-jerk. SUNIL JAIN: You managed to control diesel prices. The ‘Give It Up’ LPG subsidycampaign also benefited many. But now will you put a cap, since that could be a problem once the crude oil prices rise? You could say for instance that you won’t let LPG subsidy go above Rs 150 or Rs 200 per cylinder when the prices rise. Firstly, we won’t like to put any cap on LPG. We have set up a big model in a year; 10 million people have voluntarily given up LPG subsidy. Today, the LPG consumer base is of 16.70 crore people. Of this, 15.20 crore people are enjoying subsidy. So 1.5 crore people do not have subsidy. There should be a debate on the issue and a consensus should be formed. Some time back we collected data of LPG consumers from four to five
Kuwait to spend $115 bln on oil projects: official
OPEC member Kuwait has earmarked 34.5 billion dinars ($115 billion) to spend on oil projects over the next five years, despite the slump in oil prices, a senior executive said. “We have earmarked 34.5 billion dinars for spending on oil projects over the next five years,” Wafa al-Zaabi, head of planning at Kuwait Petroleum Corp, told an oil conference. “Over 30 billion dinars ($100 billion) will be spent on the local market and the rest abroad,” she said. Over two-thirds of the spending, or 23 billion dinars, has been allocated for exploration and production, Zaabi said. Kuwait aims to raise its production capacity, currently just over 3.0 million barrels per day, to 4.0 million bpd by 2020 and maintain it for another decade. Among main projects, it plans to build four gathering centres, carry out a key project to boost heavy oil production and raise output of free natural gas to over two billion cubic feet daily, from 150 million cubic feet currently, Zaabi said. Besides the upstream projects, Kuwait is currently implementing three downstream ventures costing over $30 billion. These include a new 615,000-bpd refinery and a clean fuel project to upgrade two of the three existing refineries, and a platform for LNG imports. Like other Gulf oil-exporting nations, Kuwait’s revenues have sharply dropped in the past 20 months due to a slump in oil prices. But the government has insisted it will continue capital investment as planned. Kuwait has amassed around $600 billion in surpluses in the 16 years to 2014 due to high oil prices. Around 95 percent of state revenues came from oil. Tramaine Brock Authentic Jersey
Our govt saved Rs. 360 billion leakages: PM
Prime Minister Narendra Modi has said that his government has saved over Rs.360 billion leakages in its campaign against corruption. “In our campaign to stop corruption, our government has saved over Rs. 360 billion leakages. About 16.2 million ration cards have been recovered,” said Modi at India Gate while giving accounts of his government’s performance in the past two years. “In Haryana, around six lakh fake ration cards were recovered,” he added. Modi further said: “Corruption has eaten away our country like termites. Those who looted our nation are not happy with our government.” “People ask me ‘Modiji you do such good work, then why are you criticised?’,” he said, adding what will people who get affected due to the steps taken by the government to stop corruption do except criticise. “No one can disagree that previous government was infected with corruption, but after we came to power we stressed on eradicating corruption,” he added. On cooking gas connections, Modi said: “In the next three years we will bring LPG connections to 50 million people.” Sam Mills Authentic Jersey
ONGC mulling buying majority stake in GSPC’s Krishna Godavri basin gas block
ONGC is mulling buying majority stake in GSPC’s Krishna Godavari basin gas block which will help prevent the Gujarat government firm’s Rs 195 billion loan from turning into an NPA. Since the BJP-led government took power in the Centre, Gujarat State Petroleum Corp Ltd (GSPC) is seeking to sell a majority stake in its KG-OSN-2001/3 (Deendayal) block in Bay of Bengal to Oil and Natural Gas Corp (ONGC), sources said. GSPC was to begin gas production from the block in 2013 but after sinking in $ 3.6 billion it was found that gas reserves are one-tenth of 20 trillion cubic feet claimed in 2005 and that too is technically difficult to produce. In the process it has amassed Rs 195.76 billion of debt, on which interest cost was Rs 18.041 billion in 2014-15, according to the CAG. And against this its revenue was Rs 1.525billion in 2014-15. Sources said GSPC has been doing trial production of a very small volume of gas from August 4, 2014 and has not yet reached commercial production and in absence of revenue commensurate with the debt servicing obligations it risks becoming a defaulter. To bail out of the situation, a few weeks back it offered to sell 50 per cent stake to ONGC, they said. Money from ONGC can repay a part of the debt and the remaining would become a joint liability of the two firms. Sources said GSPC also wants ONGC to use its undersea infrastructure for a fee. ONGC has gas discoveries in a neighbouring block and GSPC wants gas from those to be routed through its Deendayal block infrastructure for onward transportation to the shore. But the state-owned firm feels it was not technically feasible as its KG-D5 gas cannot be mixed with GSPC’s gas which has high levels of sulphur and carbon dioxide content. Also it is high-pressure and high-temperature gas. Besides, the GSPC facilities on Deendayal field are about 60-km away from the Cluster-II gas fields in ONGC’s KG-DWN-98/2 block and pumping gas that far is not feasible. Sources said ONGC feels it is not cost effective to install compressors on the seabed to pump gas from its fields to GSPC facilities. GSPC’s field is one of the most difficult fields in the world as cost of extracting gas would be in the vicinity of $12 per million British thermal unit, double the rate provided by the government currently, they said. The company is producing 0.6 million standard cubic metres per day (mmscmd) of gas from the field as trial production for almost two years now. As per the approved field development plan (FDP), natural gas production was to reach 3.83 mmscmd in second year and achieve peak output of 5.24 mmscmd in the third. Kavon Frazier Womens Jersey
In US, gasoline prices at 11-year low. But its days are numbered
Even with global oil prices grinding higher, American holiday travelers will see the cheapest prices at the pump in more than a decade for this holiday weekend, saving nearly 50 cents a gallon compared with last year. But the bargain-basement prices are probably fleeting. Declining oil supplies have led to a near doubling of crude prices since early February. On Thursday, the world’s benchmark prices breached $50 a barrel, and for the first time since August prices for regular gasoline have risen above $2 a gallon in all 50 states. The average gas station has raised its prices 17 cents a gallon over the last month — and 5 cents over the last week alone. The sharp decline in oil and gasoline prices since late 2014 because of a persistent global petroleum glut has been partly reversed in recent weeks as wildfires curbed production in Canada and rebel attacks throttled Nigerian oil exports. At the same time, oil companies are cutting back production in the United States and several other countries because of the recent collapse of oil prices — which still remain at levels that are roughly half what they were two years ago. And the low prices have raised demand for petroleum products in China, India and the United States. Oil and gasoline prices are not poised to return to levels of the days when crude was worth well over $100 a barrel, which became the norm in recent years. That was before the drilling frenzy in shale fields across the United States slashed imports and flooded the global market, while demand slowed in Europe and many developing markets. But the rig count in the United States is now down roughly 80 percent over the last two years, which means less exploration and production through the end of this year as output from older wells declines. Since service companies have slashed their payrolls, it will take as much as six months to rehire and organize new drilling crews to develop new wells, energy experts say. “The help the consumer has gotten in this weak economy from low oil prices is coming to an end,” said Larry Goldstein, a director of the Energy Policy Research Foundation, a research group funded by the government and oil industry. “The unanticipated supply disruptions are coming at the most inopportune time. Now U.S. production is declining and global inventories hare starting to decline along with it.” Oil executives and other experts say that still hefty global inventories will keep prices from rising to extremes anytime soon, but that oil prices are likely to rise at least another 10 percent during the next year. Further steady rises in price are expected through the end of the decade given the deep cuts in exploration investment across the global oil patch. But drivers probably should not worry about such projections too much for the rest of the summer. On Thursday, the average price for a gallon of regular gasoline nationally was $2.31, 43 cents below a year ago, according to the AAA motor club. The Oil Price Information Service, which monitors fuel prices, expects that the average national price this summer will be $2.25 to $2.50 a gallon of regular, the cheapest summer driving since 2009. Refinery repairs have been particularly helpful in reducing prices in California. AAA expects 34 million people to drive at least 50 miles this holiday weekend, the most since 2005. It is part of a broader trend of more road travel as the economy improves. Experts say the Memorial Day traffic is just the beginning of a summer of traffic jams at the nation’s beaches and mountain parks. “The statistics over the last two years have been dramatic in terms of numbers of increased road trips during the critical holiday periods,” said Bill Sutherland, senior vice president for travel and publishing at AAA. “As the roads become busier, and as the hotels become used, as restaurants fill up, you will want to be sure you have effectively planned out the trip.” In the meantime, economists say that they see a benefit for lower-income people, who spend the highest proportion of their salaries on energy and generally drive older, gas-guzzling vehicles. Some of the states with the lowest gasoline prices, like Mississippi, South Carolina and Arkansas, have a large number of lower-income workers, many of whom drive long distances to work. And some sectors of the economy, including tourism, are also benefiting. “People are driving more and eating out more, and employment in restaurants is up incredibly,” said Mine K. Yucel, director of research at the Federal Reserve Bank of Dallas. “People care about oil prices because they see the price of gasoline on every street corner. They experience the change in price every week or 10 days, and they feel they have more cash in their pockets.” If nothing else, the rising price has raised morale in the U.S. oil patch. “There is a chance the price could go down pretty quick,” said Denzil West, president of Reliance Energy, a Texas driller. “With prices being a little more stable, we’re cautiously optimistic, but a lot of companies have been wrecked and all the fallout has not been seen yet.” Gino Gradkowski Jersey
Discovered Small Fields Bid Round-2016 launched
In a bid to boost domestic oil and gas production, Ministry of Petroleum and Natural Gas (MoPNG), Government of India today announced the commencement of the ‘Discovered Small Fields Bid Round-2016’ in New Delhi. Shri Dharmendra Pradhan, Minister of State (I/C) for Petroleum and Natural Gas launched the new bidding round. The technical information portal and e-bidding portal were also launched. Discovered Small Fields are oil and gas blocks which have so far remained commercially undeveloped, but are now in focus as the central government seeks to boost domestic hydrocarbon production. Under the announced ‘Discovered Small Fields Bid Round-2016’, 46 Contract Areas consisting of 67 different small fields are being offered to investors the world over, for exploration and production. Bids are being invited for developing and monetizing these contract areas having 625 Million Barrels of Oil and Oil Equivalent Gas (O+OEG) in-place volumes spread over 1500 square kilometers in Onland, Shallow water and Deepwater areas. Directorate General of Hydrocarbons (DGH), the technical arm of the Ministry, shall anchor the entire bidding process. Speaking on the occasion, Shri Pradhan highlighted that India is now moving towards a new era of hydrocarbon production, driven by a forward looking Hydrocarbon Exploration and Licensing Policy (HELP); and a new fiscal model based on Revenue Sharing Contract. This new phase is a move ahead from the earlier NELP; and Production Sharing Contract regime and addresses various industry concerns that led to slowdown in investment over the last few years. Single license for exploring all forms of hydrocarbons, graded system of royalty rates, pricing and marketing freedom for crude oil and natural gas, were some of the highlights of HELP mentioned by the Minister. He said that the Government is following principles of Enhancing Production, Attracting Investment, Generating Employment, Transparency, and Minimizing administrative discretion. Shri Pradhan said that a simpler and transparent administrative and fiscal system has been crated. Calling upon all industry stakeholders to participate in the bid rounds and be a part of new energy revolution in India, the Minister assured all support in endeavors. Some of the other prominent and industry friendly features of the bidding round are: · Single license to extract and exploit conventional and unconventional hydrocarbon fields · New fiscal regime based on revenue sharing model · Operational autonomy and flexibility for unit development in case of reservoirs extending beyond contract area or for joint development of common infrastructure · Exemption of Oil Cess and Custom duty · Full freedom for marketing and pricing for production from the awarded contract areas · Royalty in line with earlier New Exploration Licensing Policy (NELP) · Technical capability is not a pre-qualification criteria for bidding · Exploration allowed during entire contract period (20 years), which is mutually extendable for up to 10 years · No restriction on exploration activity during the contract period · Information Docket to be made available at e-bidding gateway · Physical Data Centers with Interpretation Facility would be set up in India and various others international locations where prospective bidders can access data · User-friendly e-bidding Portal and interactive video for easy navigation to be made available to bidders. · Discovered fields to be offered with no upfront signature bonus Roadshows would be held at different parts of the country and international venues to attract maximum interest of prospective bidders for the ‘Discovered Small Fields Bid Round-2016’, and to encourage industry players to participate in the bid process. Danton Heinen Authentic Jersey
The World’s Largest Oil And Gas Companies 2016: Exxon Is Still King
The past year hasn’t been kind to oil and gas companies, as sliding oil prices have eaten sharply into bottom lines and caused layoffs and bankruptcies across the industry. However, the titans of energy are still standing tall, even as their businesses are pressured. ExxonMobil remains the world’s largest oil company and No. 9 on Forbes’ Global 2000 list of the world’s biggest and most powerful public companies, as measured by a composite score of revenues, profits, assets and market value. While Exxon has managed to maintain its massive dividend program, it has slid two spots on our list and recently lost its perfect credit rating for the first time since the Great Depression. China’s state-controlled oil company PetroChina is the second-largest on our list and Chevron takes third place. Both companies have dropped considerably, though, falling nine spots and 12 spots on the Global 2000, respectively. The abundance of cheap oil is the culprit. While a barrel of crude has gone up and down in price this year, recently breaking $50 per barrel, it’s still a far cry from the $100-plus that it fetched in 2014. Earlier this year, oil bottomed in the low $30s. This has been particularly bad news for countries that depend on oil. State-owned oil companies are getting squeezed and in Russia, for instance, Gazprom (No. 53) has dropped a staggering 26 spots and Rosneft (No. 75) has fallen 16 spots. Albert Pujols Womens Jersey